APS 2009 Annual Report Download

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09AR
P INN A C L E W E S T C A P I TA L C O R P O R AT I O N
POWERFUL RELATIONSHIPS

Table of contents

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    POWERFUL RELATIONSHIPS 09AR P I N N AC L E W E S T C A P I TA L C O R P O R AT I O N

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    PINNACLE WEST IS A PHOENIX-BASED COMPANY WITH CONSOLIDATED ASSETS OF ABOUT $12 BILLION. THROUGH OUR SUBSIDIARIES, WE GENERATE, SELL AND DELIVER ELECTRICIT Y AND SELL ENERGY-RELATED PRODUCTS AND SERVICES TO RETAIL AND WHOLESALE CUSTOMERS IN THE WESTERN UNITED STATES.

  • Page 4
    POWERFUL RELATIONSHIPS 09AR DONALD E. BRANDT Chairman, President and Chief exeCutive OffiCer "OUR cOmPANy HAS NOT ONLy cONSTRUcTEd AN ELEcTRIc SySTEm IN ARIzONA, bUT HAS ALSO WORkEd TO bUILd LASTINg RELATIONSHIPS WITH OUR cUSTOmERS ANd THEIR cOmmUNITIES."

  • Page 5
    ... have set the bar for future performance. As we look to 2010, we expect operating expenses, less the cost of programs specifically recovered through regulatory surcharges, to approximate those of 2009. SERVING DIVERSE COMMUNITIES AND STAkEHOLDERS Arizona provides an economically dynamic foundation...

  • Page 6
    ... and importance of this relationship. The regulatory settlement strengthens APS financially by improving our ability to maintain investment-grade credit ratings and support our common dividend. Further, we now have a meaningful opportunity to earn a return on equity comparable with the average for...

  • Page 7
    ... and chief executive officer of Mayo Clinic, is director of the Arizona State University Health Care Delivery and Policy Program. His extensive experience leading complex organizations with multiple constituencies fi ts exceptionally well with Pinnacle West. Three directors are retiring in 2010 from...

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    POWERFUL RELATIONSHIPS 09AR POWERFUL RELATIONSHIPS ARE BUILT UPON

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    VALUE PERFORMANCE CREATIVITY SYNERGY P8 P12 P14 P10

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    ... LONG - TE RM VA L UE WE'VE SET AN AGGRESSIVE GOAL: HELP ARIzONA BECOME THE SOLAR CAPITAL OF THE WORLD. APPROPRIATELY, WE ARE OFF TO A BRIGHT START. IN 2009, APS UNVEILED A NEW SOLAR PROjECT AT ARIzONA'S NATURAL WONDER, THE GRAND CANYON. THE COMPANY ALSO ANNOUNCED PLANS TO BUILD 100 MEGAWATTS OF...

  • Page 11
    ...Brad aLBert, aPs GeneraL manaGer Of strateGiC PLanninG and resOurCe aCquisitiOn In October of 2009, Don Brandt was named Utility CEO of the Year by the Solar Electric Power Association. The award recognized Mr. Brandt's leadership, as well as the efforts of APS's renewable energy team. In addition...

  • Page 12
    POWERFUL RELATIONSHIPS 09AR In 2009, the Palo Verde Nuclear Generating Station celebrated 18 consecutive years as the nation's largest power producer and achieved the second highest generation total in its 22-year history. APS's coal power plants continue to provide steady, cost-effective power ...

  • Page 13
    ... THIS COMMITMENT TO OUTSTANDING SERVICE ROUTINELY RESULTS IN OPERATIONAL PERFORMANCE THAT RANkS WITHIN THE TOP qUARTILE OF OUR INDUSTRY. IN 2009, APS SET A COMPANY RECORD FOR ELECTRIC RELIABILIT Y BY kEEPING POWER AVAILABLE 99.99 PERCENT OF THE TIME. ELEcTRIc OUTAgES PER APS cUSTOmER 1.61 1.15 0.89...

  • Page 14
    ... AWARD IN 2010. THE AWARD, PRESENTED BY THE U.S. DEPARTMENT OF ENERGY AND THE U.S. ENVIRONMENTAL PROTECTION AGENCY, RECOGNIzED APS AS A PERENNIAL LEADER IN DELIVERING ENERGY EFFICIENCY PROGRAMS TO CUSTOMERS. APS PREVIOUSLY WON THREE ENERGY STAR PARTNER OF THE YEAR AWARDS FOR OUR ENERGY STAR LIGHTING...

  • Page 15
    ... direCtOr Of smart Grid APS's Renewable Energy Incentive Program assists customers by reducing the costs of renewable energy equipment for their homes and businesses. In 2009, participation in the program increased more than 250 percent. By the end of 2012, APS plans to have smart electric meters...

  • Page 16
    ... We plan to meet the majority of these new customers' power needs with renewable generation and expanded energy efficiency. APS hosts Community Partner Academies for community leaders. The two-day experience provides area stakeholders with an overview of the company while serving as a powerful tool...

  • Page 17
    ... WILL ENHANCE APS'S ABILIT Y TO INVEST IN RENEWABLE ENERGY SOURCES AND ENERGY EFFICIENCY PROGRAMS, AND PROVIDES PRICE STABILIT Y FOR CUSTOMERS. cUmULATIVE ELEcTRIcITy SAVINgS FROm APS EFFIcIENcy PROgRAmS 0.1% Of aPs retaiL eLeCtriC saLes 4% 13% (PrOJeCted) 22% (PrOJeCted) 2005 2010 2015 2020

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    P.16 OUR VISION: bOARd OF dIREcTORS OFFIcERS P18 P20 P19 FINANcIAL INFORmATION

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    POWERFUL RELATIONSHIPS 09AR CREATING A SUSTAINABLE ENERGY FUTURE FOR ARIzONA

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    ... of Global Management COmmittees: Corporate Governance; Finance, Nuclear & Operating; Human Resources, Chairman 4. denis a. COrtese, m.d. (66) 2010 Chairman of the Board, President & Chief Executive Offi cer COmmittee: Finance, Nuclear & Operating Director, Health Care Delivery and Policy Program...

  • Page 21
    ...2001 Vice President, Energy Delivery Vice President, Regulatory Affairs & Plant Improvement, Palo Verde Nuclear Generating Station LOri s. sundBerG (46) 2007 denise r. danner (54) 2009 Vice President, Controller & Chief Accounting Officer Executive Vice President, Customer Service & Regulation...

  • Page 22
    POWERFUL RELATIONSHIPS POWERFUL RELATIONSHIPS 09AR PINNAcLE WEST HIgHLIgHTS (dOLLars and shares in miLLiOns, exCePt Per-share amOunts) 2009 stOCk summarY 2008 2007 Stock price per share - year-end Market capitalization - year-end Common shares outstanding - year-end Per-share hiGhLiGhts (diLuted)...

  • Page 23
    ... activities Net cash flow used for investing activities Net cash flow provided by (used for) financing activities Cash and cash equivalents at end of year Complete audited consolidated financial statements can be found in our Annual Report on Form 10-K online at pinnaclewest.com. $ 105 1,031 (705...

  • Page 24
    ... Year ended deCemBer 31, 2009 2008 Millions Net income attributable to common shareholders Adjustments: Real estate segment Income tax benefits related to prior years Severance costs Power plant sale tax resolution On-going earnings $ 168 - - - 236 $ 68 Per Share $ 0.67 1.66 - - - $ 2.33 Millions...

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    SHAREHOLdER INFORmATION STOck LISTINg TIckER SymbOL: PNW ON NEW yORk STOck EXcHANgE COrPOrate headquarters 400 North 5th Street Phoenix, Arizona 85004 Mailing address: P.O. Box 53999 Phoenix, Arizona 85072-3999 Main telephone number: (602) 250-1000 investOrs advantaGe PLan and sharehOLder aCCOunt ...

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